The day has finally arrived. The Union Government announced the much-awaited Union Budget 2023 today in Parliament. Union Finance Minister Nirmala Sitharaman tabled the Budget just a while ago. We have been hearing a lot about the tax slabs and the tax they pay as per their annual incomes.
In the budgets, only the poor are preferred and middle-class people get ignored usually. But this time the Union Government surprised everyone by giving a big relief to the middle-class people in taxes. The limit for annual income for those who need not pay the tax has been increased by two lakhs.
Earlier, those who have an annual income of 5 lakhs need not pay taxes. But the same was increased to seven lakhs. Amid applause, Nirmala Sitharaman said that she is proposing the idea to increase the limit to seven lakhs. This will be a big relief for middle-class people.
Those who earn more than 5 lakhs early had to pay some tax. But they need not do that now as the limit was not pushed to 7 lakhs. The majority of middle-class families will benefit from the hike in tax rebate limit.
No tax is payable up to seven lakhs. After crossing the limit, people have to pay a tax of 5 percent for Rs 3 to 6 lakhs and 7 percent for Rs 6-9 lakhs, and 12 percent of the tax for Rs 9-12 lakhs. Nirmala Sitharaman said this addressing the house today.
On top of this, the number of tax slabs was cut down to five from six.
Up to Rs 3 lakh - 0% tax.
Between Rs 3 and 6 lakh - 5% tax.
Between Rs 6 and 9 lakh - 10% tax.
Between Rs 9 lakh and Rs 12 lakh - 15% tax.
Between Rs 12 lakh and Rs 15 lakh - 20% tax.
After cutting down the tax slabs to five from six, Union Finance Minister Nirmala Sitharaman said that the highest income tax is imposed on those who have an income of Rs 15 lakhs and they do have to pay a tax of 30 percent.